The dramatic increase in the price of gold, silver, and platinum has impacted the intrinsic value of precious metal coins, boosting the sale price of these coins to levels not seen before. The modern 1-ounce Gold American Eagle has the absurd face value of $50. By 1964, the final year in which 0.900 fine silver dimes, quarters, and half dollars were minted for circulation, those silver coins were worth significantly more than their legal face value. Scarce to rare dates as well as very high condition coins continued to keep ahead of this curve, also sparing the more collectible coins from the melting pot, while the more commonly available coins were scrapped for a profit when compared to their face values.
The recent increases in precious metal prices have been observed by a collector with whom I often share views, the collector noticing that this is creating a buying opportunity. Using Morgan silver dollars as an example, he observes, “The premiums over spot have shrunk almost as much as spot has increased, with lower grades offered near melt. Meanwhile, Brilliant Uncirculated silver dollars have had stable values, with inflation making them more affordable.”
Many modern commemorative coins are currently selling near their intrinsic values. The same collector said he recently purchased a roll of 1920s Mercury dimes for their scrap silver prices. He remarked, “I can trade my junk silver for the scarcer dates at nearly no cost.” I’ll add to this that many common date lower condition gold half eagles, eagles, and double eagles are now selling near or at the same price as do cleaned and other problem pieces. Take a look. Buying opportunities abound!